FIIs remained net sellers for the 13th consecutive session, offloading equities worth ₹1,082 crore. This has taken cumulative FII selling over the last 13 trading sessions to ₹70,987 crore, highlighting continued caution among foreign investors.
Meanwhile, the FII long-short ratio in index futures improved to 12.35% on June 11 from 7.58% on June 8. Interestingly, short covering has been visible in index futures over the last four sessions, indicating a gradual reduction in bearish positions.
Nifty opened with a gap-up on the back of renewed optimism surrounding a potential U.S.-Iran deal. However, the index failed to sustain at higher levels as profit booking emerged, dragging it down towards the 23322–23312 zone. The index found support in this region on two occasions before staging an impressive rebound during the second half of the session. Strong buying interest in the second half helped Nifty close at 23,631, up 2.03%.
On the daily chart, the index formed a sizeable bullish candle with a noticeable lower wick, indicating strong buying interest at lower levels. The RSI, which was hovering below the 40 mark, has witnessed a sharp uptick, signalling a revival in bullish momentum. The Index has reclaimed the 20-day EMA for the first time since 27th May.
Going ahead, the immediate resistance for Nifty is placed in the 23770-23800 zone. Any sustainable move above this zone could result in Nifty extending its pullback towards 23950, followed by 24100 in the short term. On the downside, the immediate support for Nifty is placed in the 23470-23450 zone.
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